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Open Access
Article
Publication date: 1 December 2022

Chaehwan Lim, Gyuseung Kim and Hun-Koo Ha

Since airlines that employ their resources effectively will achieve operating profitability, air route resource allocation is significant for airlines. This study aims to…

Abstract

Purpose

Since airlines that employ their resources effectively will achieve operating profitability, air route resource allocation is significant for airlines. This study aims to investigate an appropriate model to reallocate resources into each air route of an airline company.

Design/methodology/approach

This study proposes a network centralized data envelopment analysis (DEA) models with slack-based measure (SBM). The proposed model not only takes into account the two interconnected stages but also considers the nonradial approach with transfer-in and transfer-out slacks for resource reallocating. Furthermore, the authors modify the objective function to an input-oriented function with SBM, and divide the model into passenger and freight parts, which makes the model more realistic for the characteristic of air routes.

Findings

The empirical analysis using an airline company's internal data provides airline operators with information on how they increase or decrease input resources, which can serve as a practical guideline of resource reallocation. Specifically, the results indicate that the airline company should increase their input resources into long-haul air routes such as KOR-OCN while decreasing their input resources into short-haul air routes such as Korean-Oceania (KOR-OCN), Korean-Chinese (KOR-CHN), Korean-Southeast Asian (KOR-SEA), Korean-Japanese (KOR-JPN).

Originality/value

Although some papers evaluate air route efficiencies based on the DEA approach, a few existing papers have addressed resource allocation for air routes. This paper is the first to study the resource reallocation for air routes based on the DEA approach, contributing to the literature in expanding the scope of research on resource reallocation.

Details

Journal of International Logistics and Trade, vol. 20 no. 4
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 30 June 2020

Valeria Maltseva, Joonho Na, Gyuseung Kim and Hun-Koo Ha

We adopt a super slack-based measurement (SBM) data envelopment analysis (DEA) model to estimate the efficiency of five biggest freight rail operators in Russia, which are…

Abstract

We adopt a super slack-based measurement (SBM) data envelopment analysis (DEA) model to estimate the efficiency of five biggest freight rail operators in Russia, which are included in the top 30 freight rail operators in terms of two dimensions – financial and operational efficiency during 2013–2017. The result shows that the private companies characterized by high financial and operational efficiency, while the Rossiiskye Zheleznye Dorogi (RZD) subsidiaries characterized by sufficiently low financial and operational efficiency scores. And the result also presents that operational efficiency score of operators handling universal rolling stock is higher than financial efficiency scores. In contrast, financial efficiency scores of operators handling special rolling stock is higher than operational efficiency scores. rail freight operators in addition to a special rolling stock park should have a universal rolling stock park for higher profitability. State-owned companies and its subsidiary operate inefficiently in the midst of a market economy in Russia. Rail freight operators for a higher level of financial efficiency should be transferred to the private sector.

Details

Journal of International Logistics and Trade, vol. 18 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 1 August 2016

Wenqi Jiang

Different from manufacturing resources allocation problems, the prices and amounts of limited public service resources could not be changed with the consumers’ requirements and…

1607

Abstract

Purpose

Different from manufacturing resources allocation problems, the prices and amounts of limited public service resources could not be changed with the consumers’ requirements and social fairness is the most important objective for improving allocation efficiency. To measure social fairness reasonably, the purpose of this paper is fourfold: first, divide social fairness into longitudinal comparative fairness and crosswise comparative fairness, therefore providing their calculation formula and describing the comprehensive fair degree by using the interval numbers. Second, the comparison regulations of interval numbers are given and the corresponding features are also described. Third, an extension of VIKOR method is put forward for evaluating social fairness of different allocation alternatives with interval numbers. Finally, a numerical example illustrates the proposed method and clarifies the main results developed in the paper.

Design/methodology/approach

In this paper, the author depicts the social fair degree as an interval number, and thus proposes the comparison method between any two interval numbers. Based on the basis procedure of the VIKOR method, the paper proposes an extension of the fuzzy VIKOR method with the interval numbers to rank and select the compromise allocation alternatives. Finally, a numerical example illustrates the practicability of the proposed method.

Findings

The comparison of interval numbers is very important when the author evaluates the decision alternatives. Through analyzing the present comparison methods, the paper proposes the simple method of comparing the interval numbers, which can obtain the same results with the above two methods. The fuzzy VIKOR method, a popular multi-criteria decision-making method, focusses on ranking and selecting from a set of alternatives in a fuzzy environment. For the fuzzy value, the paper also proposes the extension of the VIKOR method to perform an evaluation and get the compromise alternatives.

Originality/value

According to the huge customers’ requirement, how to improve their social fair degree has become the focus in public service resources allocation, where the social fair degree may be a comprehensive concept which includes the fair degree compared with all the other allocation alternatives and the fair degree compared with the other small group under the same allocation alternative. In the paper, the author defines the above two types of fair degree and then depicts the comprehensive fair degree as their integration, which will be interval numbers.

Details

Kybernetes, vol. 45 no. 7
Type: Research Article
ISSN: 0368-492X

Keywords

Open Access
Article
Publication date: 21 June 2022

Yusuf Günaydın, Antónia Correia and Metin Kozak

This paper aims to understand the most efficient hotel system and why efficiency varies across years and between the two differing types of hotel businesses in Turkey.

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Abstract

Purpose

This paper aims to understand the most efficient hotel system and why efficiency varies across years and between the two differing types of hotel businesses in Turkey.

Design/methodology/approach

A data envelopment analysis (DEA) analysis was used to characterise the efficiency of all-inclusive (AI) and bed and breakfast (B&B) hotel businesses with one output (total revenue) and three inputs (labour, food and capital costs). The Malmquist approach is then used to discern changes in total efficiency (TTE) and intertemporal shifts in the efficiency frontier (technological change (Tch)).

Findings

The results reveal that the AI hotel operates at 100% efficiency in the summer and year-round. The B&B hotel business operates at 89.6% with variable constant returns to scale during the summer and with 100% efficiency. The results of the Malmquist approach indicate that the total factor productivity grew in the years 2015, 2016, 2018 and 2019, while the other years were marked by inefficiency. Such increases were due to technical efficiency change (TEch) and Tch, which means that managerial and allocative efficiency (AE) were barely achieved. Slight differences were noted in the two time periods (all year and summer), suggesting that the scale of hotel businesses is prepared to operate all year round, and this calls for strategies to mitigate seasonality.

Research limitations/implications

As to avenues for future research, the limitations of this study are threefold. First, the hotel businesses are not parallel in terms of the duration of their service offerings. Future research may consider including an AI hotel business that is in operation for the whole year. Second, businesses in Turkey are sceptical about sharing their data as it is considered confidential. However, to better generalise the results and encourage hoteliers to consider the positive outcomes of such analysis, the number of observations could be increased by considering more hotel businesses in both categories. Third, a mixture of data representing businesses operating in various countries may reflect if the efficiency scores vary internationally.

Practical implications

Overall, AI hotel businesses are more attractive but less efficient than B&B. Furthermore, the external crisis impacts the efficiency of hotel businesses meaning that hotel managers could keep on exploring AI, perhaps educating their hosts not to waste or not offer huge quantities. Hotel managers may also need to enlarge their seasonal activities to ensure more efficiency.

Social implications

Despite the intentions of AI hotel businesses to increase their profitability with a lower level of service quality, this study shows that the AI hotel business is very attractive but not so efficient due to the higher propensity of guests to consume food and beverages in excess that compromises the definition of efficiency as zero waste. AI is very attractive for family groups or those seeking the pleasure of relaxation at seaside resorts and is also very popular in Turkey. On the other hand, the B&B hotel business is more efficient but less attractive.

Originality/value

The contributions of this paper are threefold. First, the authors analysed the efficiency and inefficiency of hotel businesses within nine years of operations. During this period, Turkey experienced first a tourism boom (2011–2014) followed by stagnation and subsequently a sharp decline due to political instability resulting in an (in)direct impact on tourism (2015–2019). Second, the authors compared the efficiency and inefficiency of AI and B&B hotel businesses. Third, the authors examined the effects of hotel management factors to ensure efficiency.

Details

European Journal of Management and Business Economics, vol. 31 no. 4
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 2 December 2016

Juan Aparicio

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The…

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Abstract

Purpose

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The focus herein is primarily on methodological developments. Specifically, attention is mainly paid to modeling aspects, computational features, the satisfaction of properties and duality. Finally, some promising avenues of future research on this topic are stated.

Design/methodology/approach

DEA is a methodology based on mathematical programming for the assessment of relative efficiency of a set of decision-making units (DMUs) that use several inputs to produce several outputs. DEA is classified in the literature as a non-parametric method because it does not assume a particular functional form for the underlying production function and presents, in this sense, some outstanding properties: the efficiency of firms may be evaluated independently on the market prices of the inputs used and outputs produced; it may be easily used with multiple inputs and outputs; a single score of efficiency for each assessed organization is obtained; this technique ranks organizations based on relative efficiency; and finally, it yields benchmarking information. DEA models provide both benchmarking information and efficiency scores for each of the evaluated units when it is applied to a dataset of observations and variables (inputs and outputs). Without a doubt, this benchmarking information gives DEA a distinct advantage over other efficiency methodologies, such as stochastic frontier analysis (SFA). Technical inefficiency is typically measured in DEA as the distance between the observed unit and a “benchmarking” target on the estimated piece-wise linear efficient frontier. The choice of this target is critical for assessing the potential performance of each DMU in the sample, as well as for providing information on how to increase its performance. However, traditional DEA models yield targets that are determined by the “furthest” efficient projection to the evaluated DMU. The projected point on the efficient frontier obtained as such may not be a representative projection for the judged unit, and consequently, some authors in the literature have suggested determining closest targets instead. The general argument behind this idea is that closer targets suggest directions of enhancement for the inputs and outputs of the inefficient units that may lead them to the efficiency with less effort. Indeed, authors like Aparicio et al. (2007) have shown, in an application on airlines, that it is possible to find substantial differences between the targets provided by applying the criterion used by the traditional DEA models, and those obtained when the criterion of closeness is utilized for determining projection points on the efficient frontier. The determination of closest targets is connected to the calculation of the least distance from the evaluated unit to the efficient frontier of the reference technology. In fact, the former is usually computed through solving mathematical programming models associated with minimizing some type of distance (e.g. Euclidean). In this particular respect, the main contribution in the literature is the paper by Briec (1998) on Hölder distance functions, where formally technical inefficiency to the “weakly” efficient frontier is defined through mathematical distances.

Findings

All the interesting features of the determination of closest targets from a benchmarking point of view have generated, in recent times, the increasing interest of researchers in the calculation of the least distance to evaluate technical inefficiency (Aparicio et al., 2014a). So, in this paper, we present a general classification of published contributions, mainly from a methodological perspective, and additionally, we indicate avenues for further research on this topic. The approaches that we cite in this paper differ in the way that the idea of similarity is made operative. Similarity is, in this sense, implemented as the closeness between the values of the inputs and/or outputs of the assessed units and those of the obtained projections on the frontier of the reference production possibility set. Similarity may be measured through multiple distances and efficiency measures. In turn, the aim is to globally minimize DEA model slacks to determine the closest efficient targets. However, as we will show later in the text, minimizing a mathematical distance in DEA is not an easy task, as it is equivalent to minimizing the distance to the complement of a polyhedral set, which is not a convex set. This complexity will justify the existence of different alternatives for solving these types of models.

Originality/value

As we are aware, this is the first survey in this topic.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 28 July 2020

Francisco Tomás Zapata-Guerrero, Jannett Ayup, Elizabeth L. Mayer-Granados and Jorge Charles-Coll

The purpose of this paper is to contribute to the knowledge on the efficiency of the incubators in Mexico, from a double-managerial approach (incubator and start-ups) measuring…

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Abstract

Purpose

The purpose of this paper is to contribute to the knowledge on the efficiency of the incubators in Mexico, from a double-managerial approach (incubator and start-ups) measuring the efficiency oriented to the survival growth in the employment.

Design/methodology/approach

The efficiency of 25 business incubators of a university in a Mexico was analyzed from 2012 to 2014. Through the envelope data analysis (DEA) technique, composed of five inputs and three outputs, which help to determine the decision-making units (DMUs) that are in the best practice border, being able to know the factors relevant and how they have been managed in the different incubators.

Findings

One of the three years observed was identified as the most efficient, with 13 start-ups at the most efficient border. The projection shows some entries that must be modified to maximize the creation of new incubated business with a focus on survival and growth. The authors propose the resources that must be modified to adopt efficient management practices for incubators and start-ups small size.

Research limitations/implications

This analysis recognizes the size and restriction of resources as a determinant in the efficiency of intermediate technology business incubators. However, an obvious limitation is the non-standardized sample of 25 incubators does not allow generalizing the results.

Practical implications

The special support received by start-ups linked to a university with strong financial and non-financial support.

Originality/value

Dual management (incubator and incubated start-ups) approach to efficiency analysis and the use of the DEA for the incubation topic and to fill a gap persists in the understanding of creation of new business in intermediate technology.

Details

RAUSP Management Journal, vol. 55 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 31 March 2019

Kwangwuk Kim, Dong-Hoon Son and Hwa-Joong Kim

In today’s multi-channel distribution environment, it is crucial for the competitiveness of retail stores and companies to improve efficiency of dedicated logistics centers (DLCs…

Abstract

In today’s multi-channel distribution environment, it is crucial for the competitiveness of retail stores and companies to improve efficiency of dedicated logistics centers (DLCs) servicing types of retail outlets such as large retail-stores, super supermarkets, and convenient stores. This paper derives efficiency improvement strategies for DLCs through efficiency analyses. To this end, this paper empirically analyzes the efficiency of DLCs by applying DEA (data envelopment analysis) approaches using real data from a Korean distribution company. In detail, this paper analyzes operations, finance, and service efficiencies of DLCs and performs a comparison analysis on the efficiency between DLCs. Finally, this paper discusses the analysis results considering the DLCs’ characteristics and derives managerial and operational implications.

Details

Journal of International Logistics and Trade, vol. 17 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 19 May 2020

Rebeca Cordero-Gutiérrez and Eva Lahuerta-Otero

The purpose of this study is to examine the different results and the level of success obtained with advertising campaigns developed on Facebook to promote postgraduate programs…

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Abstract

Purpose

The purpose of this study is to examine the different results and the level of success obtained with advertising campaigns developed on Facebook to promote postgraduate programs to create awareness and engagement.

Design/methodology/approach

This study combined the data envelopment analysis technique to measure advertising efficiency with multidimensional scaling (MDS) representation, thus offering alternatives for practitioners and organizations on how to evaluate social advertising performance.

Findings

Investments on social paid advertising are an affordable and effective way both to promote postgraduate programs and create engagement with prospective students. Facebook advertisements maximize visibility, which improves social and online positioning and encourages student recruitment.

Practical implications

Higher education institutions can efficiently promote their programs with a minimal social investment contributing to dissemination and engagement. Compared to other forms of traditional or digital advertising, social media ads can be efficient and affordable with wider segmentation and targeting options. Moreover, results are immediate and measurable and campaigns can be instantly modified to better suit the audience’s requirements.

Originality/value

This study is unique as it offers a new, alternative way of measuring efficiency, in addition to the classic ratios of payment models in digital advertising that combine clicks and impressions, on a sector where there are few empirical studies. Moreover, it can be easily applied to many other sectors in public and private organizations.

Propósito

El objetivo de esta investigación es examinar los diferentes resultados y el nivel de éxito obtenido con las campañas publicitarias desarrolladas en Facebook para promover programas de postgrado que aumenten la notoriedad y la participación de los mismos.

Diseño/método/enfoque

Combinamos la técnica de análisis de envolvente de datos (DEA) para medir la eficiencia de la publicidad con la representación de escalado multidimensional (MDS), ofreciendo alternativas tanto a profesionales como a organizaciones sobre cómo evaluar el rendimiento de la publicidad social.

Hallazgos

Las inversiones en publicidad social pagada son una forma asequible y efectiva tanto para promover programas de postgrado como para crear un compromiso con los posibles estudiantes. Los anuncios en Facebook maximizan la visibilidad, lo que también mejora el posicionamiento social y en línea, fomentando la captación de estudiantes.

Implicaciones prácticas

Las instituciones de educación superior pueden promover eficazmente sus programas con una inversión social mínima que contribuya a la difusión y el engagement. En comparación con otras formas de publicidad tradicional o digital, los anuncios de los medios sociales pueden ser eficientes y asequibles, con una segmentación y opciones de orientación más amplias. Además, los resultados son inmediatos y cuantificables y las campañas pueden modificarse instantáneamente para adaptarse mejor a las necesidades del público objetivo.

Originalidad/valor

Esta investigación es única ya que ofrece una nueva y alternativa forma de medir la eficiencia, además de los ratios clásicos de los modelos de pago en la publicidad digital que combinan clics e impresiones, en un sector en el que hay pocos estudios empíricos. Además, puede aplicarse fácilmente a muchos otros sectores en organizaciones públicas y privadas.

Open Access
Article
Publication date: 2 December 2016

Taylor Boyd, Grace Docken and John Ruggiero

The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier…

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Abstract

Purpose

The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier due to measurement error.

Design/methodology/approach

The authors use stochastic data envelopment analysis (SDEA) to allow observed points above the frontier. They supplement SDEA with assumptions on the efficiency and show that the true frontier in the presence of outliers can be derived.

Findings

This paper finds that the authors’ maximum likelihood approach outperforms super-efficiency measures. Using simulations, this paper shows that SDEA is a useful model for outlier detection.

Originality/value

The model developed in this paper is original; the authors add distributional assumptions to derive the optimal quantile with SDEA to remove outliers. The authors believe that the value of the paper will lead to many citations because real-world data are often subject to outliers.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 12 September 2023

Fulin Shang, Xiyue Teng and Minyoung Park

The purpose of this study is to quantify port efficiency assessment indicators to analyze the impact of COVID-19 on Chinese One Belt One Road (OBOR) ports.

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Abstract

Purpose

The purpose of this study is to quantify port efficiency assessment indicators to analyze the impact of COVID-19 on Chinese One Belt One Road (OBOR) ports.

Design/methodology/approach

This study utilized a grey prediction model GM(1,1) to forecast five relevant indicators for each of the 17 OBOR ports both with and without COVID-19 background conditions. Additionally, the data envelopment analysis (DEA) efficiency assessment approach was used to analyze the impact of COVID-19 on port efficiency.

Findings

The results indicate that cargo and container throughput growth rates during the COVID-19 pandemic are reduced by 1.7 and 2.1%, respectively. There was also a noticeable reduction in technological efficiency (TE) as well as pure technological efficiency (PTE), while scale efficiency (SE) remained largely unaffected. Furthermore, the dynamic efficiency MI was mainly negatively impacted by changes in overall efficiency change (EFFCH), where pure efficiency change (PECH) less than one contributed significantly towards overall regression of port efficiencies during this period.

Originality/value

This paper is unique in its use of a combination of the grey prediction model and DEA efficiency assessment to quantify changes in important indicators during pandemic periods. This approach not only provides a quantitative understanding of the impact on port-level efficiency through numerical quantification but also offers readers an intuitive understanding.

Details

Journal of International Logistics and Trade, vol. 21 no. 4
Type: Research Article
ISSN: 1738-2122

Keywords

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